Cautious Markets

European stocks finished with losses Tuesday, erasing Monday’s advances as investors took a cautious approach ahead of U.S. Federal Reserve Chairwoman Janet Yellen’s testimony to Congress. U.S. interest rates are important to investors globally as many assets are priced in dollars and the tone from the Fed signals the strength of the world’s largest economy.

U.S. stocks were also slightly weaker on Tuesday after President Donald Trump's eldest son released an email chain, which referred to a top Russian government prosecutor as offering the Trump campaign damaging information about Democratic rival Hillary Clinton. Trump's son, Donald Trump Jr., agreed to meet with a Kremlin-linked lawyer during the 2016 election campaign after being promised damaging information about Hillary Clinton.

Oh Snap!

Snap Inc (SNAP.N) shares tumbled on Tuesday after Morgan Stanley, the lead underwriter on the company's initial public offering, downgraded the stock and raised concerns about the social media company's ability to compete with Facebook Inc's (FB.O) Instagram. The company faces growing competition from Facebook, which once made a $3 billion bid for Snapchat.

Snap's user growth trends have been modestly weaker than expected, Morgan Stanley analyst Brian Nowak wrote in the note. Their shares have tumbled some 45 percent from a high hit shortly after their debut and slipped under their $17 IPO price for the first time on Monday. Morgan Stanley cut its estimates for Snap's 2017 revenue by 6.9 percent to $897 million, and daily active user expectations by 1.6 percent to 182 million.

Deutsche Borse and Trumid

German exchange operator Deutsche Boerse Group has made a $10 million investment in Trumid, a New York-based financial technology startup that runs an electronic corporate bond trading platform, the companies announced on Monday. The company plans to expand into Europe to extend its offering to its 350 institutional clients, many of which operate globally.

Trumid, which is backed by venture capitalist Peter Thiel and investor George Soros, will collaborate with Deutsche Boerse to develop products and services for the European market. Founded in 2014, Trumid is one of a spate of electronic bond trading platforms set up in the past few years to help to ease a liquidity crunch in fixed income markets. It hopes to facilitate trading by enabling asset managers and brokers to transact directly and anonymously with one another on its platform.